This article discusses a rapidly evolving situation, and the facts could change. If Schwab updates its notice, I will write about the updates. This content is for educational purposes and is not investment, tax, or legal advice. Please consult an adviser or counsel for personalized and current guidance.
Schwab announced last week that it will require $10 million to be funded into new and transferred long/short accounts and will allow only Regulation T margin (no more portfolio margin), starting Sept 16, 2026.
The changes will surely curb inflows and, according to one adviser, "kneecap" a popular concentrated stock solution.
One manager quickly messaged advisers, setting its own onboarding cutoff for Sept 11, 2026, and saying the account must be ready to trade by EOD Sept 15, 2026.
Schwab's stated reason for the policy change is capacity. Demand "has grown rapidly," and "the current pace of growth of these strategies could limit our ability to support the full range of capabilities" investors and advisers expect.
Existing accounts keep their current terms unless investors/advisers modify something, which Schwab has yet to define precisely...